Quote:
Originally Posted by AARP
So, if I'm getting this right, you can basically mine free money? How does that equate to real dollar value?
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Ultimately if you think of it in terms of dollar value, you're missing the point of the "money" and of why the government finds it dangerous.
Moreover, it ain't free if you have to spend hundreds of hours of CPU time to generate the coins. There's quite a lot that goes into a theory of money here of why BitCoin is an interesting idea. It has characteristics that make it unique in history. It is virtual, that is not backed like a traditional commodity money, but is an intensely and systematically constrained supply. So it meets a key criteria of scarcity, but not of inherent (original use based value).
My interests are that it is a systematically constrained money supply, that is immune to arbitrary increase in base money stock, and two, works on a peer to peer network which, unlike other attempts at creating competitive currencies, including digital currencies, is highly resistant to government attack because there is no central clearing house or physical entities to attack. (The government is a real monopoly that uses guns and cages to protect its racket.) This is quite a finger in the eye of the man and is a step in the direction of establishing resilient financial institutions for Agorists in particular.